5 °c
London
Sunday, April 18, 2021
No Result
View All Result
FurtherAsia FurtherArabia FurtherBrazil FurtherRussia
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
FurtherAfrica
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About
No Result
View All Result
FurtherAfrica
No Result
View All Result
Home Africa

Zimbabwe wheat supplies Dwindle on foreign-exchange shortage

FurtherAfrica by FurtherAfrica
September 7, 2018
in Africa, Agriculture, Currency, Economy, Finance, Trade, Zimbabwe
Reading Time: 2 mins read
0
FAO launches Rural Invest in Mozambique
Share via QRWhatsappShare on FacebookShare on TwitterLinkedInPinteresteMail

Zimbabwe is running out of wheat because the central bank won’t provide foreign currency needed to pay for a consignment of the grain, the Grain Millers’ Association of Zimbabwe said.

The country only has 28,028 metric tons of wheat stored, compared with a three-monthly requirement of 114,000 tons, Lynette Veremu, general manager of the association, said in a Sept. 4 letter to millers seen by Bloomberg. The document, stamped ‘Trade Secret,’ was verified by the association.

While the GMAZ has sufficient funds to pay for the wheat, which is stalled at the port of Beira in neighboring Mozambique, a payment of $12.5 million is needed before U.K.-based Holbud Ltd. will release the grain, Veremu said. The central bank won’t provide the funds, using them instead to pay for imports of gasoline and diesel, she said.

“Wheat and fuel are both in Category 1 of the Reserve Bank of Zimbabwe’s foreign-payment remittance priority list,” Veremu said. “Regrettably, fuel gets $21 million per week religiously, but wheat is not getting a paltry $12.45 million for the entire national monthly requirements.”

Cash Shortage

Zimbabwe doesn’t have its own currency, with the government adopting a basket of foreign currencies including the U.S. dollar and South African rand as legal tender in 2009 after hyperinflation rendered the local dollar worthless. The country has faced a cash shortage for at least the past two years, as businesses and individuals moved money offshore and the nation’s import bill increased after exports had collapsed.

Central bank Governor John Mangudya wasn’t available to comment when Bloomberg called him on Thursday, but he earlier told the Harare-based Daily News newspaper that the bank had “arranged letters of credit for the procurement” of 40,000 tons of wheat a month.

Holbud may divert the wheat at Beira to millers in Mozambique and Malawi unless it receives payment, Veremu said. Retailers and bread bakers are already running short of flour in parts of the country, she said.

A person who answered the phone at Holbud’s offices in London said no one was immediately available for comment.

Source: Bloomberg

Related

Tags: Central BankCentral bank GovernorFeaturefuelgeneral manager of the associationGMAZGrain Millers Association of ZimbabweJohn MangudyaLynette VeremuReserve Bank of Zimbabwe’s foreign-payment remittance priority listTrade Secretwheatwheat supplies Dwindlezimbabweзимбабвеزيمبابويジンバブエ津巴布韦
ScanSendShare320Tweet200Share56Pin72Send
Previous Post

Angola’s BNA releases €50 million

Next Post

Puma Aviation enters Mozambique aviation fuel market

FurtherAfrica

FurtherAfrica

Founded in 2015 FurtherAfrica is an online platform centralising news and content focusing on the development and growth story of the African continent.

Related Posts

South Africa: Western Cape sees increase in domestic travel over Easter weekend
Weekend

South Africa: Western Cape sees increase in domestic travel over Easter weekend

by FurtherAfrica
April 17, 2021
Water

Zimbabwe to export water to South Africa

by Staff
April 16, 2021
Conference Access to Africa coming to Dakar, Senegal
Conference

Conference Access to Africa coming to Dakar, Senegal

by FurtherAfrica
April 16, 2021
Soon, Africa’s largest utility will not own any power lines
Energy

Tanzania rural electrification project continues to make progress

by Staff
April 16, 2021
Economy

Mozambique: ‘Valuation of the metical only useful if reflected on the economy’

by FurtherAfrica
April 16, 2021
Next Post
Business tourism benefits from new measures in Angola

Puma Aviation enters Mozambique aviation fuel market

Swaziland launches tender for its second solar park

Feasibility study contractor selected for Mozambique energy project

Understanding: Mozambique local content in the extractive industry

Agility raises warehousing game in Mozambique

Leave a Reply Cancel reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

2021 AFSIC
2022 Indaba Mining

FurtherAfrica Partners

The Exchange Club of Mozambique Taarifa Rwanda
CrudeMix Africa TechGist Africa Farmers Review Africa
Botswana unplugged Financial Insights Zambia Africa Oil & Power
Harambee Africa Novafrica  

Subscribe to FurtherAfrica

Enter your email address to receive notifications of new articles on your email.

Join 73,051 other subscribers.

FurtherAfrica

© 2021 FurtherMarkets

FurtherAfrica is a FurtherMarkets Limited platform

  • Countries
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

Follow Us

No Result
View All Result
  • Countries
    • Angola
    • Botswana
    • Cape Verde
    • DRC
    • Eswatini
    • Ethiopia
    • Kenya
    • Malawi
    • Mauritius
    • Mozambique
    • Namibia
    • Nigeria
    • Rwanda
    • South Africa
    • Tanzania
    • Uganda
    • Zambia
    • Zimbabwe
  • OpenTalk
  • Understanding
  • Videos
  • Weekend
  • About

© 2021 FurtherMarkets

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?